Is HEICO Corp. overvalued or undervalued?

As of 19 September 2025, the valuation grade for HEICO Corp. moved from expensive to fair, indicating a shift in its perceived value. The company is currently fairly valued, with a P/E ratio of 55, a Price to Book Value of 9.23, and an EV to EBITDA ratio of 34.64. In comparison, Teledyne Technologies, Inc. has a P/E ratio of 29.71 and Leidos Holdings, Inc. shows a more attractive P/E of 16.13, highlighting HEICO's relatively higher valuation metrics within its industry.
Despite its fair valuation, HEICO Corp. has demonstrated strong performance, with a year-to-date return of 34.08%, significantly outpacing the S&P 500's return of 13.31% over the same period. However, over a 10-year horizon, HEICO's return of 186.26% lags behind the S&P 500's impressive 240.36%, suggesting that while the stock is currently fairly valued, it may have underperformed in the long term compared to the broader market.